Citizens Budget Commission (CBC) President Andrew Rein released this statement on borrowing authority for New York City operating expenses:

While New York City’s fiscal crisis is severe, it should not borrow now to balance the fiscal year 2021 budget. City leaders have better options to balance this year’s budget. Borrowing should be a last resort, but ultimately could be a reasonable choice if revenues prove significantly lower than currently projected.

Before borrowing, the City should implement all the savings included in this year’s adopted budget and more in the future. Borrowing should only be authorized for the amount needed to address additional revenue shortfalls. No borrowing should happen without a comprehensive and feasible plan that leads to fiscal stability, and must be accompanied by certification, monitoring, and approval of major actions by the Financial Control Board.  

The acceptable parameters are described in a new blog released this morning: Authority for NYC to Borrow for Operating Expenses Should Be Provided Only with Strict Conditions and Oversight.